The impact of corruption, economic freedom, regulation and transparency on bank profitability and bank stability: Evidence from the Eurozone area
| Autor: | Keith Pilbeam, Iuliana Tomuleasa, Dimitrios Asteriou |
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| Rok vydání: | 2021 |
| Předmět: |
Organizational Behavior and Human Resource Management
Economics and Econometrics 050208 finance Corruption Corporate governance media_common.quotation_subject 05 social sciences Bank regulation Monetary economics Economic freedom Transparency (graphic) 0502 economics and business Financial crisis Economics Profitability index 050207 economics Panel data media_common |
| Zdroj: | Journal of Economic Behavior & Organization. 184:150-177 |
| ISSN: | 0167-2681 |
| DOI: | 10.1016/j.jebo.2020.08.023 |
| Popis: | This paper examines the impact of corruption, economic freedom, bank regulation and transparency on bank profitability and bank stability using a sample of 326 banks from the 19 Eurozone countries over the period 2005–2018. We use a balanced panel data set and the Arellano-Bond Generalized Method of Moments dynamic panel estimation procedure. We find that corruption and transparency have a negative effect on bank profitability and bank stability. By contrast, greater economic freedom boosts profitability and banking stability. Our results show that regulation is positively related to bank profitability and its precise effects on stability depend upon the nature of the regulation. We additionally examine how our results are affected by Governance issues and the addition of 5 other European countries from outside the Eurozone. Our overall results indicate that the impact of the variables of interest is sensitive to the precise measures chosen to calculate profitability and financial stability. |
| Databáze: | OpenAIRE |
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